From Technology to Transformation: How AI Governance Initiatives Drives Sustainability Through Managerial and Organizational Mediation

This study examines how artificial intelligence (AI) enables sustainability transformation in small and medium-sized enterprises (SMEs) in emerging economies. Using sequential mixed-methods design and drawing on Organizational Change (OC) and Organizational Transformation (OT) theories, the study of SMEs shows that AI drives sustainability through managerial enablement and organizational mechanisms. Strategic sensemaking, ethical framing, and participatory communication translate AI capabilities into sustainability goals, while governance routines and feedback systems institutionalize adaptive learning. The study contributes by integrating OC–OT perspectives and offers practical guidance for designing adaptive, ethically grounded AI-driven governance initiatives in resource-constrained contexts.